Applied Materials Stock Just Hit a New All-Time High. Should You Buy AMAT Here?

Core Viewpoint - Applied Materials (AMAT) shares reached a record price of approximately $331, driven by a sector-wide rally following Taiwan Semiconductor's (TSM) record earnings, with TSMC's capital expenditures projected to hit $54 billion this year, positively impacting AMAT as a key supplier of semiconductor manufacturing equipment [1]. Group 1: Stock Performance - Applied Materials stock has increased by an impressive 165% compared to its 52-week low [2]. - KeyBanc analysts predict that AMAT stock will continue to rise significantly, particularly due to its exposure to conventional DRAM, which is facing scarcity, leading to capacity expansion commitments from companies [3]. - KeyBanc raised its price target for AMAT to $380, suggesting a potential upside of 15% from current levels [4]. Group 2: Competitive Positioning - AMAT's diversified exposure to both memory and logic chips positions it well to benefit from the AI buildout expected in 2026, while currently being more attractively priced than peers like KLA and Lam Research [5]. - The company is trading at a forward price-earnings (P/E) multiple of just over 30x, which is significantly lower than KLA and LRCX, both exceeding 40x [6]. - Historically, AMAT has averaged a 5.76% rally in February over the past 16 years, adding to the reasons for a positive outlook in the near term [6].